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Sam
Sam, Accountant
Category: Tax
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My wife and I bought a property in Aus. in 2001, ,000dollars

Customer Question

My wife and I bought a property in Aus. in 2001, for 300,000dollars (£100000) and are selling it for 653000dollars
(£300000),we lived in it for three years and rented out for10 years. And payed aus tax at 28 o/o. but did not declare on U.k.tax return, how will the inland revenue view this.
I will have a 40,000dollar C.G.T. to pay on the property in aus.due next June.what will be my C.G.T. bill be in u.k. and how do make sure I do not pay twice.we are both u.k. residence. James
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

How long have you been living in the UK and not disclosing the Australian rental income? Is the UK Pounds purchase value of the property based on the 2001 exchange rate? Is the current UK Pounds value based on the current exchange rate? You say that you lived in the property for 3 years and let it for 10, yet you bought it in 2001. Can you account for the missing 2 to 3 years? In order to give you an accurate approximation of the CGT as possible, can you break down the varios stages of ownership of the property (occupied by you, let commercially, vacant but available for let and vacant and not available for let) into months please.

Expert:  TonyTax replied 1 year ago.

I have to go out but will be back in about 30 minutes.

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